DoD Awards $121M Alternate Care Facility Contract to AECOM Technical Services
Contract Overview
Contract Amount: $121,409,270 ($121.4M)
Contractor: AECOM Technical Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-03-28
End Date: 2020-04-27
Contract Duration: 30 days
Daily Burn Rate: $4.0M/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: ALTERNATE CARE FACILITY (ACF): SUNY OLD WESTBURY - OLD WESTBURY, NY
Place of Performance
Location: OLD WESTBURY, NASSAU County, NEW YORK, 11568
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $121.4 million to AECOM TECHNICAL SERVICES, INC. for work described as: ALTERNATE CARE FACILITY (ACF): SUNY OLD WESTBURY - OLD WESTBURY, NY Key points: 1. Significant contract value of $121.4 million for an Alternate Care Facility. 2. AECOM Technical Services, Inc. secured the sole award, raising questions about competition. 3. The contract was not competed, potentially impacting price discovery and taxpayer value. 4. The sector is Commercial and Institutional Building Construction, with a short 30-day duration.
Value Assessment
Rating: questionable
The contract value of $121.4 million for a 30-day facility build-out appears high. Benchmarking against similar rapid-deployment construction projects is difficult without more detail, but the lack of competition suggests potential overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and may have resulted in a higher price than if multiple vendors had bid.
Taxpayer Impact: The lack of competition and potential for overpricing raises concerns about the efficient use of taxpayer funds for this critical facility.
Public Impact
Public health infrastructure expansion during a crisis. Significant federal investment in temporary healthcare solutions. Potential for rapid deployment of medical capacity. Contract awarded to a single entity without competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High per-unit cost implied by contract value and short duration
- Sole-source award
Positive Signals
- Rapid deployment of critical healthcare infrastructure
- Awarded during a national emergency
Sector Analysis
This contract falls under Commercial and Institutional Building Construction, specifically for a temporary healthcare facility. The $121.4 million award for a 30-day build-out is substantial and likely reflects emergency conditions and specialized requirements.
Small Business Impact
The contract was not awarded to small businesses, as indicated by 'sb': false. This represents a missed opportunity for small business participation in a significant federal contract.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and prevent potential waste. Further review of the justification for not competing the contract is recommended.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency in award process
- No small business participation
Tags
commercial-and-institutional-building-co, department-of-defense, ny, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $121.4 million to AECOM TECHNICAL SERVICES, INC.. ALTERNATE CARE FACILITY (ACF): SUNY OLD WESTBURY - OLD WESTBURY, NY
Who is the contractor on this award?
The obligated recipient is AECOM TECHNICAL SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $121.4 million.
What is the period of performance?
Start: 2020-03-28. End: 2020-04-27.
What was the specific justification for awarding this contract on a sole-source basis, especially given the substantial value?
The justification for a sole-source award typically involves urgent and compelling circumstances where competition is not feasible. In the context of a pandemic, the need for rapid deployment of alternate care facilities might have necessitated bypassing the standard competitive bidding process to meet immediate public health demands.
How does the cost per bed or per square foot compare to similar emergency facility constructions, and what factors drove the high price?
Without specific details on the facility's capacity (beds) or size (square footage), a direct cost comparison is challenging. However, the high total value for a short duration suggests significant costs related to rapid mobilization, specialized equipment, and potentially premium pricing due to the emergency nature of the requirement.
What measures were in place to ensure accountability and effective execution of the contract given the compressed timeline and lack of competition?
Accountability in sole-source contracts often relies on robust oversight mechanisms, including detailed performance metrics, regular progress reports, and independent quality assurance checks. The government likely implemented stringent monitoring to ensure AECOM met the project's objectives within the tight deadline and budget.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W912DS20R0009
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: AECOM
Address: 300 S GRAND AVE STE 1100, LOS ANGELES, CA, 90071
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $121,409,270
Exercised Options: $121,409,270
Current Obligation: $121,409,270
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $199,524,767
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-03-28
Current End Date: 2020-04-27
Potential End Date: 2020-04-27 00:00:00
Last Modified: 2023-07-02
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